The Russian LDPE market bore the heaviest losses in 2009, having lost nearly 30% of demand and moved at 418 kt. The HDPE market shrank only by 5% (to 732.5 kt); whereas EVA consumption fell down by 9% (at about 18 kt). The LLDPE market was getting strength; that was the only market that demonstrated growth of domestic shipments up to 118 kt (+16.8%).
Overall PE imports were 21% down; the drop referred to the three PE types: HDPE was in the ⌠lead with minus 31% (about 165 kt), and followed by LDPE - 26% (about 55 kt), and EVA with minus 17% (about 10 kt). There were positive trends in imports of LLDPE (+7%) and copolymers (+20%).
The crisis in the Russian construction industry determined shrunk production volumes (tiling by 51%, pipes on average by 18%, concrete by 18.4%), which could be obviously tracked in PE imports. Imports of leading grades in the pipe extrusion sector dropped by more than two times (Yuhwa Hiden P600BL/Korea Petrochemical - by 53%, Hostalen CRP 100/LyondellBasell - by 66%).
One of the positive aspects of 2009 was the growth of output by nearly all domestic producers (overall output increased 11%, and exceeded 1 415 kt). In January 2009, Nizhnekamskneftekhim launched a PE plant that was run on average at more than 50% during the year, and the overall output exceeded 130 kt at year-end.
Domestic producers increased their exports; particularly about 278 kt of material were shipped to China. Overall exports went up by 125%, to more than 447 kt; at the same time, exports increased by all PE types apart from EVA (-4%). Exports of Tomskneftekhim's 15803-020 grade hiked by 4 times, to 170 kt.
For more detailed analysis of market moves and market development forecast, see MRC Annual Report.